Research Overview
End User Insights Reveal Potential in New Markets
Participants in the non-disposable industrial gloves markets are desperately
seeking ways to breathe new life into this largely commoditized industry.
Without proper end-user perspectives, suppliers run the risk of focusing more on
supply chain management and less on customer needs and problems. There is,
therefore, an urgent need to re-examine the market from the viewpoint of the end
user. Frost & Sullivanfs analysis reveals that the service sectors are now
being considered as the new areas of opportunity for product diversification,
technological advancement, market development, and greater profitability.
This Frost & Sullivan research provides market participants with critical
end-user insight from five major industrial sectors: petrochemical/refining,
heavy manufacturing, aerospace/defense, electronics, and chemicals. Apart from
examining end-user preferences in suppliers (including manufacturers and
distributors), the study also includes historical reflections on the past
numbers of glove wearers and expenditures, and a seven-year projection of
numbers of wearers and expenditures.
At the End of the Day, Quality Wins Over Price
With hardly any actual domestic manufacturers left in the market, the
competition is largely between participants that are importing gloves from
cheaper manufacturing countries and their erstwhile edistributorsf who,
themselves, are also independently importing product lines. This has created a
situation wherein companies are desperately vying with one another to offer the
lowest possible product prices. Despite this, end users appear to prioritize the
safety and quality of the products over price issues.
"Frost & Sullivanfs end-user analysis revealed that the quality of
products offered as well as their price was universally rated among the
companies' highest priorities," says the analyst of this research.
"This is further indicative that although price is important, end users are
unwilling to buy inferior products, regardless of the varieties that are offered
to them."
Niche Markets Hold Significant Promise
Until recently, the major end users of non-disposable industrial gloves were
in manufacturing and industrial facilities, transportation sectors, and
utilities. These segments, which predominantly use general purpose gloves,
currently represent an area of market saturation, slender margins, and
decreasing revenue. "The stimulus to offer innovative product lines is,
therefore, seen as originating from fresh applications in new industries
utilizing superior materials," notes the analyst. "Only then can a
company hope to differentiate itself from the sea of competition and
survive."
This is compelling companies to explore opportunities in areas such as
hazardous material (HazMat) handling, electronics, pharmaceuticals, biotech,
food processing, and others. The potential for profitability is, therefore,
greater in these areas, particularly for specialty chemical/liquid resistant and
cut and abrasion resistant gloves.
Frost & Sullivan Growth Partnership Service
Based on extensive and in-depth research, real-world consulting work, and new
theories tested in hundreds of companies across many industries, Frost &
Sullivan has evolved its Growth Partnership Services (GPS) program that provides
established and emerging firms with powerful growth visions. Moving beyond token
mission statements, GPS provides an actionable vision to growth consulting
partners by illustrating how key intelligence and strategic research based on
defined goals can guide day-to-day behavior and overall company direction. The
foundation of Frost & Sullivan's GPS includes:
- Assisting companies to reach their full potential in the core business
- Providing growth strategies to help companies expand into related
businesses
- Preemptively redefining the core business during market turbulence
- Applying the Frost & Sullivan framework to identify and address common
mistakes resulting from misaligned corporate strategies
- Recommending growth management strategies through continuous partnership
To maximize the potential for growth within a firmfs internal and external
environment, Frost & Sullivan consultants can facilitate the creation of
strategic programs that deliver improved market success. Frost &
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expertise and applying these with absolute commitment to its clientsf growth.
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